Transformation is the new buzz word in the business environment. Every Bank and Financial Institution (FIs) has initiated some programme for this and has set aside budgets to achieve transformation.
And, there is no choice. The technology revolution, coupled with the Millennial, is ensuring a change in the old order. And, for Banks and FIs to stay relevant, transformation needs to be top priority. Banks like BNY Mellon, Commonwealth Bank of Australia,
Allied Irish Bank and Deutsche Bank have set up innovation labs that showcase next generation banking and technology.
But, what is transformation? The dictionary defines transformation as "change in form, appearance, nature, or character." But, does this change not have to be truly profound, to be termed as Transformation?
In Banking scenario, is transformation achieved through dramatic changes in the process, the technology the product suite or the people? Can one of these individually contribute to a transformation? Or do a combination of people, process, product and technology
contribute to bring true value?
For example, can rationalizing the product suite to two-three simple offerings bring about a major change, or can digitization of the customer onboarding process along with simplification of the product suite bring in larger value?
True Transformation has to be a disruption of the old state and a totally re-imagined new state. It cannot be process or technology fixes – that is the job of lean initiatives and re-engineering efforts. Transformation should bring in a value, an impactful
value that can make the organization grow at least 3X times. There should be a definite improvement in the business metrics and this improvement should be measurable and range over 50 %. And, while technology will be the foundation or base for any transformation,
technology alone or process improvements by themselves cannot bring in the impact that accrues due to Transformation.
Having said this, what should transformation achieve in an organization? Let’s ponder on this and do share your thoughts on this.
My next blog will touch upon this.